Key Financial Changes Effective October 2026: UPI, SBI, LPG, NPS Rules Updated

Starting October 1, 2026, several new financial regulations and changes will impact payments, savings, and household budgets. These include revised charges for the National Pension System (NPS), mandatory Know Your Customer (KYC) requirements for LPG consumers, changes to State Bank of India (SBI) ATM withdrawal fees, and new bulk deposit norms. Additionally, UPI MDR charges are set to commence from October 15.

From October 15, a 0.4 percent Merchant Discount Rate (MDR) will apply to person-to-merchant UPI payments exceeding ₹2,000. This charge, to be paid by merchants, is capped at ₹300 for transactions of ₹75,000 or more. Payments between individuals and most everyday merchant transactions will remain free. Essential services, such as railways, telecom, fuel, and insurance, will incur a flat ₹5 fee for transactions above ₹2,000, while capital markets transactions will have a lower 0.02 percent rate, also capped at ₹300.

SBI has revised its service charges for Basic Savings Bank Deposit (BSBD) account holders, effective October 1, 2026. These accounts will continue to have four free cash withdrawals per month, covering SBI and other bank ATMs, as well as branch channels. Beyond this limit, a charge of ₹15 plus GST will apply for each additional cash withdrawal, though digital transactions remain free. For LPG consumers, KYC becomes mandatory from October 1 for booking efills at the regulated retail selling price. Consumers without completed KYC will still be able to obtain LPG, but at the applicable market price without the subsidy, subject to oil marketing company conditions.

National Pension System (NPS) subscribers will see a revised Point of Presence (PoP) charge structure from October 1, 2026. This includes a one-time onboarding fee of ₹200 for every Permanent Retirement Account Number (PRAN) opened through a PoP, alongside an annual fee of 0.20 percent of their assets under management (AUM), excluding dormant accounts. The Reserve Bank of India’s revised framework for bulk deposits, also effective October 1, mandates that banks publish interest rates for bulk deposits of ₹3 crore or more on their websites daily and maintain a fixed interest rate for a given deposit amount across all branches. This rule, however, does not impact retail investors.

Editor's note: The draft is comprehensive, accurately detailing all financial changes and specific figures provided in the source full text.